Tourism & Cultural Trends - Indian couples are offering strangers access to their wedding ceremonies [1] - This trend allows tourists to experience Indian weddings firsthand [1] - The experience is described as feeling "like being Beyoncé for a day" [1]

Financial Data and Key Metrics Changes - In Q3 2025, net yield increased by 7.1% year-over-year, reaching $617, the highest in Viking's history [5][12] - Adjusted gross margin rose by 21.4% year-over-year [12] - Adjusted EBITDA reached $704 million, up 26.9% year-over-year, with an adjusted EBITDA margin of 52.8% [15] - Net income improved to $514 million, an increase of almost $135 million compared to Q3 2024 [15][16] Business Line Data and Key Metrics Changes - In the river segment, capacity PCDs increased by 5.2% year-over-year, with adjusted gross margin up 14.3% to $1.4 billion and net yield at $589, up 7.8% [17] - In the ocean segment, capacity PCDs increased by 15.3% year-over-year, adjusted gross margin rose by 28.5% to $1.5 billion, and net yield increased by 10.9% to $591 [17] Market Data and Key Metrics Changes - As of November 2, 2025, 96% of 2025 capacity was sold, with advanced bookings of $5.6 billion, a 21% increase from 2024 [5][21] - For 2026, 70% of capacity is already booked, with advanced bookings of $4.9 billion, 14% higher than the same point in 2025 [21][24] Company Strategy and Development Direction - The company focuses on destination and cultural enrichment, aiming to create a new category of travel that emphasizes meaningful discovery [9][10] - Viking has expanded its fleet to over 100 ships, with a commitment to modernizing river and ocean voyages [7][8] - The company aims to maintain its leadership position in river cruising by controlling or having priority access to 113 docking locations [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong booking environment and the resilience of their target customers [5][6] - The company remains committed to disciplined cost management while investing in talent and supporting expanding capacity [14][19] - Management highlighted the importance of maintaining high standards to continue receiving industry recognitions [11] Other Important Information - Viking's capital structure has improved, allowing for financial flexibility to pursue long-term growth opportunities [19][34] - The company has received a credit rating upgrade from Moody's to Ba2 [19] Q&A Session Summary Question: What is driving the pricing increase for 2026? - Management indicated that strong consumer demand and a resilient customer base are key factors driving pricing increases, with a focus on engaging consumers rather than aggressive pricing actions [30] Question: What does pursuing long-term growth mean for Viking? - Long-term growth is focused on organic growth through new ship orders and potential market share expansion in the luxury ocean segment, with an eye on scalable and margin-accretive opportunities [34] Question: Can you elaborate on demand trends and customer loyalty? - Management noted that demand remains strong, with a significant portion of customers being repeat visitors, and emphasized the brand's appeal to those seeking a quieter, more enriching travel experience [39][81] Question: How does Viking plan to respond to new competitors in the river space? - Management expressed confidence in their unique positioning and plans to continue focusing on delivering outstanding products rather than worrying about competitors [52] Question: What are the expectations for future itineraries and capacity growth? - Management indicated that while ocean itineraries will remain consistent, there is potential for geographic expansion in river offerings, particularly in emerging markets like China [87][77]

Financial Data and Key Metrics Changes - In Q3 2025, net yield increased by 7.1% year over year, reaching $617, the highest in Viking's history [5][12] - Adjusted gross margin rose by 21.4% year over year [12] - Adjusted EBITDA reached $704 million, up 26.9% year over year, with an adjusted EBITDA margin of 52.8% [15] - Net income improved to $514 million, an increase of almost $135 million compared to Q3 2024 [15][16] Business Line Data and Key Metrics Changes - In the river segment, capacity per capacity day (PCD) increased by 5.2% year over year, with adjusted gross margin rising by 14.3% to $1.4 billion [17] - Ocean segment capacity PCD increased by 15.3% year over year, with adjusted gross margin up 28.5% to $1.5 billion [17] Market Data and Key Metrics Changes - As of November 2, 2025, 96% of 2025 capacity was sold, and 70% of 2026 capacity was already booked [5][21] - Advanced bookings for 2025 reached $5.6 billion, a 21% increase compared to the same point in 2024 [21] - For 2026, advanced bookings are at $4.9 billion, 14% higher than the same point in 2025 [21] Company Strategy and Development Direction - The company focuses on destination and cultural enrichment, aiming to create a new category of travel that emphasizes meaningful discovery [9][10] - Viking plans to continue expanding its fleet and enhancing its product offerings, with a commitment to maintaining high standards of service and customer experience [11][19] - The company is exploring both organic and inorganic growth opportunities, including potential expansion into the Chinese market [76][77] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong booking environment and the resilience of their target customers [5][21] - The company remains committed to disciplined cost management while investing in talent and capacity to support long-term growth [14][19] - Management noted that the current capital structure provides financial flexibility to pursue growth opportunities [34] Other Important Information - Viking has been recognized as the number one cruise line for oceans and rivers by Condé Nast Traveler for five consecutive years [10][11] - The company controls or has priority access to 113 coveted docking locations, enhancing guest experiences [10] Q&A Session Summary Question: What is driving the pricing increase for 2026? - Management indicated that strong demand and consumer resilience are key factors driving pricing increases, with a focus on engaging consumers rather than aggressive pricing actions [30] Question: What does pursuing long-term growth mean for Viking? - Long-term growth includes organic growth through new ship orders and potential inorganic growth opportunities that are scalable and margin accretive [34] Question: Can you elaborate on demand trends and loyalty? - Management noted that demand remains strong, with a significant portion of guests being repeat customers, reflecting loyalty to the Viking brand [39][41] Question: How does Viking plan to respond to new competitors in the river space? - Management emphasized their unique advantages in docking locations and ship design, focusing on delivering outstanding products rather than worrying about competitors [52][64] Question: What are the expectations for future itineraries and market expansion? - The company plans to maintain its current successful itineraries while exploring new markets, including potential growth in the Chinese market [77][88]

Core Insights - Consumer demand for experiential travel is rebounding, benefiting cruise operators like Carnival Corporation & plc (CCL) and Royal Caribbean Cruises Ltd. (RCL) [1] - Both companies are leveraging strong brand portfolios and improving fundamentals to capitalize on elevated demand and pricing power [1] Carnival Corporation (CCL) - Carnival is achieving robust yield growth and operational momentum, exceeding its 2026 targets for EBITDA per berth growth and return on invested capital 18 months ahead of schedule [3] - The company is set to launch Celebration Key, a flagship private Caribbean destination, and is enhancing its "Paradise Collection" strategy with upgrades to existing destinations [4] - Carnival is revamping its fleet and launching a new loyalty program, Carnival Rewards, expected to boost guest engagement [5] - Financially, Carnival has refinanced $7 billion of debt and improved its net debt-to-EBITDA ratio from 4.1x to 3.7x in Q2 2025, focusing on regaining investment-grade status [6] Royal Caribbean Cruises Ltd. (RCL) - Royal Caribbean is executing its "Perfecta Performance" strategy, reporting yield growth of 5.6% and a 35% EBITDA margin in Q1 2025, driven by strong demand and pricing power [7] - The company is expanding its exclusive destination portfolio with the Royal Beach Club in Nassau, aimed at enhancing guest engagement and boosting ancillary revenues [8] - RCL's digital initiatives, including a widely adopted mobile app, are improving direct bookings and revenue capture [9] - However, RCL faces near-term cost pressures related to ship deployment and elevated expenses tied to destination rollouts and dry dock activities [10] Financial Performance and Valuation - The Zacks Consensus Estimate for Carnival's fiscal 2025 sales and EPS suggests increases of 5.4% and 38%, respectively, with earnings estimates rising 3.8% in the past 60 days [11] - For Royal Caribbean, the estimates indicate year-over-year increases of 9.4% in sales and 30.7% in EPS, with a 6% rise in earnings estimates over the same period [13] - Carnival stock has increased by 31.7% over the past three months, while Royal Caribbean shares have risen by 42.6% [15] - Carnival's forward P/E ratio is 12.92X, below the industry average of 18.59X, while RCL's is 17.92X [18] Investment Outlook - Carnival presents a more attractive near-term buying opportunity due to operational efficiency and financial gains, while RCL may require a wait-and-see approach due to cost pressures [27][28]

Financial Data and Key Metrics Changes - Total company revenue for 2024 was $645 million, an increase of $75 million or 13% compared to 2023 [32] - Adjusted EBITDA for 2024 was $91.2 million, an increase of $20 million or 28% year-over-year [34] - Total company net loss available to stockholders improved to $35.8 million or $0.67 per diluted share, reflecting significant operational improvements [36] Business Line Data and Key Metrics Changes - Lindblad segment tour revenue was $423 million, an increase of $26 million or 7% compared to 2023, driven by a 2% increase in available guest nights and a 7% increase in net yield per available guest night to $1,170 [32][33] - Land Experiences tour revenues were $221 million, an increase of $49 million or 29% compared to 2023, attributed to additional trips and higher pricing [33] Market Data and Key Metrics Changes - Bookings for 2025 and 2026 are trending ahead of the prior year in both the Expedition and Land segments [16] - The 2025 program is nearly sold out, and 2026 is more than half booked [18] Company Strategy and Development Direction - The company aims to maximize revenue generation through higher occupancy, pricing, and deployment profitability [22] - Strategic initiatives include amplifying brand story through a new co-branded campaign with National Geographic and expanding sales channels [24][26] - Focus on international market expansion and enhancing operational efficiencies [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and exceeding pre-pandemic occupancy levels in 2026 [42] - The company is optimistic about strong demand in the adventure travel market across both segments [40] Other Important Information - The company facilitated 45 conservation, education, and research initiatives in 2024, emphasizing its commitment to sustainability [21] - The acquisition of Wineland-Thomson Adventures contributed to revenue growth [33] Q&A Session Summary Question: Guidance on EBITDA and revenue expectations - Management noted strong double-digit EBITDA growth in 2024 and forecasted continued growth in 2025, while also investing in future growth opportunities [49] Question: Long-term growth strategy with new management - Management highlighted three key areas for value creation: organic growth, smart cost innovation, and opportunistic fleet growth [51][53] Question: Update on Disney sales partnership - The National Geographic Disney partnership is gaining momentum, with strong expectations for 2025 based on the groundwork laid in 2024 [58]